‘Crypto’ big bet pays off in Washington

Nothing shows you’ve arrived in Washington quite like toppling a Senate committee chairman. When the digital currency industry set its sights on Senator Sherrod Brown, the powerful Banking Committee chair and vocal ‘crypto’ skeptic, many dismissed it as hubris. $40 million later, Brown is packing up his office, replaced by ‘crypto’ entrepreneur Bernie Moreno. 

Welcome to the new Washington.

I’ve covered financial technology for years, but this level of coordinated political muscle from the ‘crypto’ world is something very new. Gone are the amateur-hour days of Sam Bankman-Fried throwing money around like confetti. The industry just ran an incredibly sophisticated campaign of influence, deploying over $130 million with laser precision across crucial races.

Let’s dig into what actually happened here. 

Three groups—Fairshake, Protect Progress, and Defend American Jobs—orchestrated this effort, backed by industry heavyweights Coinbase (NASDAQ: COIN) and Ripple, plus venture giant Andreessen Horowitz. 

But rather than a confetti-like spray-and-pray approach disseminating cash everywhere, they picked their shots carefully.

Look at the House results: 253 pro-crypto candidates won seats versus 115 crypto skeptics. In the Senate? Sixteen pro-crypto victories against twelve opponents. 

That bet is already paying off in spades. BTC promptly smashed through $75,000, then $80,000, then $90,000, registering and then shattering all-time highs in quick succession. And the response from the market has been equally clear: We get it—the game just changed—and maybe for good.

“We now have the most pro-crypto Congress in history,” said Coinbase Chief Legal Officer Paul Grewal, in what all signs point to being a serious understatement. 

The industry’s strategic approach has created a new power center in Washington that transcends traditional party politics.

But the real revolution here is the bipartisan buy-in. Unlike most corporate influence efforts that pick a team, crypto-backed Democrats and Republicans showed openness to digital assets. They weren’t buying partisan loyalty; they were building a ‘crypto’ caucus that transcends traditional politics.

Walking through the policy implications makes your head spin. 

The Securities and Exchange Commission (SEC) under Gary Gensler has been an anathema to the industry, pushing a regulation through an aggressive enforcement approach that left many industry heavyweights wondering just how long it was before they received a knock at the door. 

Now? President-elect Donald Trump has promised Gensler’s head on a platter, and Congress looks ready to clip the SEC’s wings through legislation.

But that’s just the beginning. 

Industry-friendly frameworks for digital assets that seemed pipe dreams a mere six months ago are suddenly viable. The U.S. might get comprehensive crypto regulation that encourages innovation while managing risk. Or at least that’s how they’ll sell it.

Then, there are the truly wild ideas gaining traction. 

A federal strategic BTC reserve? It’s being discussed seriously, or at least the markets seem to think it is.

New approaches to DeFi regulation that preserve innovation? Suddenly, on the table. 

Even the tax code might get crypto-specific updates.

Look at who’s talking about these ideas—it’s not just the usual crypto evangelists anymore. Career staffers, policy wonks, and mainstream politicians are engaging thoughtfully with concepts that would’ve seemed absurd last year.

Perhaps most telling: Fairshake has already banked $78 million for the 2026 midterms. This wasn’t a one-time spending spree, but rather the opening move in a long-term strategy. The industry learned from watching other sectors maintain influence through consistent engagement rather than drive-by donations.

But let’s not get carried away. 

Challenges do remain. Some powerful Senate Republicans still want tougher anti-money laundering rules. Ongoing SEC cases won’t vanish overnight. As one crypto lobbyist suggested, “There is an expectation of some of these folks who are not policy people but who wrote some big checks that they’re going to get whatever they want. That’s not how it works.”

We’ll certainly see about that.

As always, the proof will be in the pudding, but the chances that 2024 proves to be the early act in a four-long year coming-of-age story have suddenly become real. And what a shift that would be.

Remember when crypto folks viewed government as the enemy and regulation as tyranny? 

Those seem downright quaint now, as anarchists left and right seem all too happy with trading in their values for promises of further riches.

The message we should take from this is that the current manifestation of the crypto industry has figured out how to work the system. But can that be done while retaining its innovative spirit? It’s a delicate balance, but they seem to demonstrate that they can walk that line with surprising sophistication.

The industry has proven it can play the influence game at the highest level. Now comes the more challenging part—turning that influence into a smart policy that works for everyone.

The next few years will determine whether crypto can translate this political capital into lasting change. Will we see thoughtful regulation that fosters innovation while protecting consumers? Or will the industry overplay its hand?

One thing’s certain—crypto isn’t just knocking on power’s door anymore. It owns the building, or at least, its heavyweights think they do.

At the very least, the crypto industry has bought itself a seat at the table.

Now, let’s see what they do with it.

Watch: Bringing the Metanet to life with Teranode